Playtika, the mobile gaming company listed on Nasdaq, has announced significant workforce reductions as part of a strategic shift in its operations. In a letter to employees, CEO Robert Antokol confirmed that the company will be laying off 15% of its workforce, which equates to around 500 employees. The move comes as Playtika seeks to move away from what Antokol described as an "unsustainable growth strategy."
"Our broad growth mindset is no longer sustainable", Antokol wrote. He explained that the decision to reduce headcount is aimed at reorganizing the company’s structure and operating model to allow for more targeted investments in future products.
A pattern of layoffs since 2022
This latest round of layoffs is not the first for Playtika, as the company has faced multiple reductions in its workforce since 2022. Over this period, more than 1,000 jobs have been cut, including approximately 90 employees in June of last year. Those earlier layoffs impacted teams working on titles like Best Fiends and Redecor, as well as employees at its subsidiary, Wooga.
The letter also highlighted a shift in Playtika’s approach to resource allocation. Antokol emphasized the need to narrow the company’s focus and scale back its portfolio of games and projects. "We need fewer layers, smaller teams, and sharper focus", he wrote, adding that some projects will no longer receive the same level of investment.
A strategic pivot towards efficiency and automation
Playtika plans to rely more heavily on artificial intelligence and automation as part of its strategy to streamline operations. According to Antokol, these technologies are expected to enhance efficiency and reduce the need for larger teams. "We must leverage AI and automation to do more with less", he stated in the letter.
The company, which employs around 3,500 people globally - including approximately 1,000 employees in Israel - has undergone a significant transformation in recent years. Its previous expansion efforts included the 2021 acquisition of Finnish studio Reworks, the developer of Redecor, in a $600 million deal. However, the founders of Reworks departed within two years, and the game was later impacted by workforce reductions.
A new focus on sustainability
Antokol described the layoffs as a step to "right-size" the company and ensure long-term sustainability. "We must right-size our organization to unlock the runway needed to invest in the future", he said. While acknowledging the challenges these changes bring for affected employees, Antokol emphasized that the company is making these adjustments "from a position of strength."
With a market capitalization of approximately $1.4 billion, Playtika’s recalibration reflects a broader shift within the mobile gaming sector. The focus is now on creating a leaner organization capable of navigating an evolving market while prioritizing investments in a smaller number of projects.
This latest announcement underscores Playtika’s commitment to restructuring its operations and aligning its resources to support long-term goals. However, it also highlights the human cost of these changes, as hundreds of employees will be affected by the company’s strategic pivot.
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